Posts by Aaron Task

  • Why Janet Yellen should ignore the Fed's hawks

    Aaron Task at Yahoo Finance2 hrs ago

    Minutes of the FOMC's July meeting released Wednesday revealed some Fed officials "viewed the actual and expected progress toward the Committee's goals as sufficient to call for a relatively prompt move toward reducing policy accommodation to avoid overshooting the Committee's unemployment and inflation objectives over the medium term."

    Among other hawkish notes, the evident dissent within the Fed raises the stakes even higher for Fed Chair Janet Yellen's speech at Jackson Hole Friday.

    But the minutes also declared that "credit conditions in residential mortgage markets generally remained tight." For this reason alone, Yellen should resist pressure to reduce the Fed's extraordinary accommodation, says Heidi Moore, U.S. Finance and Economics Editor for The Guardian. "We still have this problem where we don't have enough lending," Moore says. "Mortgage lending is incredibly tight. It's not moving. Banks are incredibly stingy."

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